Question 1191432
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The compound interest formula is
A = P*(1+r/n)^(n*t)


Let's say we have P = 100 dollars to deposit and we do so over t = 1 year.


The first scenario has r = 0.04 and n = 2
A = P*(1+r/n)^(n*t)
A = 100*(1+0.04/2)^(2*1)
A = 104.04


The second scenario involves r = 0.05 and r = 12
A = P*(1+r/n)^(n*t)
A = 100*(1+0.05/12)^(12*1)
A = 105.116189788173
A = 105.12


The second scenario is better.
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